Page 1156 - SAIT Compendium 2016 Volume2

EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2015
Amendments to subparagraph (1)(e): Amendments remove reference to Commissioner’s discretion.
CLAUSE 121
Income Tax: Amendment to paragraph 67 of the Eighth Schedule
Sub-clause (a): Amendments to subitems (ii), (iii) and (iv) - See notes on REMOVING ANOMALIES FOR
INCOME AND DISPOSAL TO AND FROM DECEASED ESTATES
Sub-clause (b): Amendments to subparagraph (2): The amendment proposes to standardise reference to the Matrimonial Property Act in the Income Tax Act.
CLAUSE 122
Income Tax: Amendment to paragraph 76B of the Eighth Schedule
Amendments to subparagraph (2)(b): Amendment seeks to clarify the provisions of the subparagraph by inserting the
word ‘that cash’.
CLAUSE 123
Income Tax: Amendment to paragraph 80 of the Eighth Schedule
Amendments to subparagraph (1) and insertion of new subparagraph (2A) - See notes on CLARIFICATION OF
THE INTERACTION BETWEEN TAXATION OF SHARE INCENTIVE TRUSTS, TIME OF DISPOSAL RULES AND ATTRIBUTION OF GAINS TO TRUST BENEFICIARY RULES
CLAUSE 124
Income Tax: Amendment to paragraph 8 of the Tenth Schedule
Amendment corrects a an error by inserting ‘right’ after the word ‘exploration’ in paragraph 8(1)(c).
CLAUSE 125
Income Tax: Amendment to the Eleventh Schedule
Amendment changes the bullets to numbers in the listing of the grants in Eleventh Schedule.
CLAUSES 126 – 127
CLAUSE 128
CUSTOMS AND EXCISE ACT VALUE-ADDED TAX
Value Added Tax: Amendment to Section 1(1)
Sub-clause (a): De nition of ‘commercial accommodation’ - See notes on ENTERPRISE SUPPLYING
COMMERCIAL ACCOMMODATION: MONETARY THRESHOLD ADJUSTMENTS
Sub-clause (b): De nition of ‘connected persons’ - The proposed amendment removes reference to the de nition of shareholder in the VAT Act since this de nition was deleted from the Income Tax Act.
Sub-clause (c): Deletes the word ‘or’ at the end of the paragraph.
Sub-clause (d): Insertion of the word ‘or’ at the end of the paragraph.
Sub-clause (e): De nition of ‘domestic goods and services’ – The amendment proposes to include ‘water’ in the
de nition of domestic goods and services
Sub-clause (f): De nition of ‘enterprise’ - See notes on ENTERPRISE SUPPLYING COMMERCIAL
ACCOMMODATION: MONETARY THRESHOLD ADJUSTMENTS
Sub-clause (g): De nition of ‘grant’ – As a consequence of the repealing of section 8(23) (clause 121), it has become necessary to amend paragraph (b) of the de nition of ‘grant’ to ensure that payments made in terms of the National Housing Programme are not interpreted to now fall within the de nition of ‘grant’. It is proposed that all payments made in terms of the National Housing Programme are now standard-rated.
Sub-clause (h): New De nition of ‘shareholder’ – As a consequence of the amendment to the de nition of ‘connected persons’ (paragraph (b) above), it has become necessary to introduce a de nition of ‘shareholder’ for VAT purposes. It is proposed that this de nition match the previous de nition from the Income Tax Act.
CLAUSE 129
Value Added Tax: Amendments to Section 8(23) - See notes on REPEALING THE ZERO RATING FOR THE NATIONAL HOUSING PROGRAMME
CLAUSE 130
Value Added Tax: Amendment to Section 9 - See notes on TIME OF SUPPLY: CONNECTED PERSONS (UNDETERMINED AMOUNTS)
CLAUSE 131
Value Added Tax: Amendment to Section 10
Amendments to paragraph (a) of subsection (4) - See notes on TIME OF SUPPLY: CONNECTED PERSONS
(UNDETERMINED AMOUNTS)
1148 SAIT CompendIum oF TAx LegISLATIon VoLume 2